Symrise records 7.4% organic sales increase driven by fine fragrances and cosmetic ingredients

27 Oct 2023 --- Symrise has reported a robust performance with 7.4% organic sales growth amounting to €3,610 million (US$3.8 billion) in the first nine months. The beauty ingredient suppplier’s performance in the Latin America and EAME regions drove the increase, while strong sales were noted in its Fine Fragrances and Cosmetic Ingredients divisions.

“In the third quarter, Symrise was able to seamlessly continue the positive sales trend of the previous months. Despite high inflation and sustained volatility in our markets, we are optimistic for the rest of the year and expect robust demand,” comments Dr. Heinz-Jürgen Bertram, CEO at Symrise.

“Our diversified portfolio and broad international positioning will also help us capitalize on our growth potential this year and create sustainable value. We are firmly convinced that we have set the right course for the future, which is why we extend our growth targets in the long term until 2028. We target continued organic growth of 5 to 7% and an EBITDA margin of 20 to 23%.”

Group performance amid global challenges
Symrise’s sales experienced a 3.3% increase compared to the previous year’s performance during the same period.

Symrise’s Scent & Care segment played a role in this trajectory alongside its food and nutrition businesses. They exhibited sales growth within an economic environment that has been posing challenges on a global scale.

The third quarter saw a 6.4% organic sales increase. However, adverse exchange rate effects at -9.4% impacted the reported sales with a decline of -3.0%. In light of these figures, Symrise extended its long-term growth goals until 2028.The Scent & Care segment achieved 4.1% organic sales growth during the first nine months.

Strong Growth in Fine Fragrances and Cosmetic Ingredients
Within the Scent & Care segment, dedicated to perfume applications, fragrance and cosmetic ingredients, Symrise achieved 4.1% organic sales growth during the first nine months and 7.1% in the third quarter. 

Considering the impact of acquisitions, sales in this segment totaled €1,343 million (US$1.4 billion), with contributions of approximately €15 million (US$15.8 million) from the acquisitions of Groupe Néroli and Romani made in 2022.

The Fine Fragrances business unit achieved double-digit percentage growth, and the Consumer Fragrance business unit achieved single-digit percentage organic growth. While market conditions remained challenging, especially in the Aroma Molecules division, due to the production shutdown at Colonel Island, Symrise anticipates improved sales growth in the fourth quarter with the recent resumption of production.

Sales in the Cosmetic Ingredients division continued to perform well in the first nine months, displaying double-digit percentage organic growth. Regions such as EAME, Asia/Pacific and Latin America saw substantial sales increases in this segment, with strength noted in micro protection and sun protection.

Regional performance and plans ahead
Symrise’s organic sales growth was robust in the Latin America and EAME regions, recording 16% and 15.1% growth rates. Key contributors to this surge in growth included divisions like Food & Beverage, Pet Food, Fragrance and Cosmetic Ingredients.

Symrise’s Asia/Pacific region maintained organic growth of 3.5%, fueled by the Fragrance, Food & Beverage, and Cosmetic Ingredients divisions. In contrast, North America’s sales had a 3.4% drop in organic sales compared to the previous year.

For the future, the company is targeting organic sales growth ranging between 5% and 7%, maintaining profitability at around 20% based on an adjusted EBITDA margin. 

By 2028, the group envisions an increase in sales between €7.5 to €8 billion (US$7.9 to US$8.4 billion), supported by annual organic growth of 5% to 7% (CAGR) and strategic acquisitions.

Commenting on an antitrust probe into the European fragrance industry that took place at the start of the year, the supplier states: “[Symrise] is committed to fully cooperating with antitrust authorities while consistently maintaining its stance on the allegations. The company has not found any evidence of wrongdoing and remains steadfast in its belief that the accusations are baseless.”

Edited by Venya Patel